Italian fund manager Prelios Sgr is joining forces with UBS Global Asset Management to launch a new fund of fund for Italian qualified institutional investors.

Italian fund manager Prelios Sgr is joining forces with UBS Global Asset Management to launch a new fund of fund for Italian qualified institutional investors.

The vehicle, Prelios' first fund of fund, will invest in units of foreign real estate funds (multimanager fund) and will be managed by Prelios with the support of UBS Global Asset Management as investment advisor.

According to well-informed market sources, the fund of fund is planning a first close of €200 mln, and is targeting a size of €500 mln in the next two years. It will mostly focus on acquisitions in the US and East Asia.

In a statement, listed real estate services firm Prelios said the operation is a good fit as the two companies complement each other.

'UBS Global Asset Management relies on a robust global real estate platform with significant access to international markets, Prelios Sgr has a sound base of Italian institutional investors,' said Paolo Scordino, CEO of Prelios SGR.

The agreement is strategic for Prelios, the company added. 'We will be in a position to provide an opportunity to institutional investors to invest indirectly also abroad,' Milan-based Prelios noted.